Futures
A note on Bitget contracts
2023-02-16 08:510210
Global Bitgetters,
Bitget
futures trading has attracted a large number of users because of its high liquidity and excellent trading experience, and it has always been one of our core products.
To help our users make more informed trades in the futures m arket, here's a quick e xplanation of three major terms: contract unit,
market value (initial margin), and notional value.
1. Contract unit: Refers to the quantity of the underlying asset in a single derivatives contract. For example, BTC, ETH or XRP (Ripple).
2. Market value: The opening value of the underlying asset, also known as the initial margin.
3. Notional value: The value of the underlying assets in a derivatives trade, which could be either the total value of the position or an agreed-upon amount of the contract. The calculation is typically the contract quantity multiplied by the price.
Example 1:
Assuming that the curren t price of BTC is 20,000 USDT, if you buy 0.1 BTC with a 10X leverage limit order, then:
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The contract unit would be 0.1 BTC
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The market value or initial margin would be 200 USDT {or (20,000 USDT × 0.1 BTC) ÷ 10 (leverage)}
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And the notional value would be 2000 USDT (or 20,000 USDT × 0.1)
Example 2:
Assuming that the
BTC price rises to 25,000 USDT, open 10X leverage:
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If the market value is 250 USDT, you can hold 0.1 BTC {250 USDT × 10 (leverage) ÷ 25,000 USDT} and the margin is 250 USDT.
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If the notional value is 250 USDT, you can hold 0.01 BTC (250 USDT ÷ 25,000 USDT) and the margin is 25 USDT {25,000 USDT × 0.01 ÷ 10 (leverage)}.
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